A machine cost $1392000, has annual depreciation of $232000, and has accumulated depreciation of $1102000 on December 31, 2025. On April 1, 2026, when the machine has a fair value of $319000, it is exchanged for a machine with a fair value of $1566000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at $1421000. $1537000. $1247000. $1566000